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Home Energy, Where Kilowatt-Hours Go

The DOE 2020 Residential Energy Consumption Survey (RECS) breaks average U.S. home energy use: space heating 42%, water heating 18%, space cooling 12%, refrigeration 3%, lighting 6%, electronics/appliances 19%. Average site energy consumption was 77.1 million BTU/year — about 22,600 kWh-equivalent when including all fuels. Electric-only homes consumed 11,075 kWh/year on average.

Envelope improvements dominate retrofit ROI. DOE's Weatherization Assistance Program 2022 evaluation of 92,000 low-income homes found average annual savings of $284/household at a retrofit cost of $5,180 — an 18-year simple payback, or 6-8 years including health and comfort benefits. Air sealing ($150-$400 DIY) and attic insulation (R-30 to R-49, $1,500-$3,500) are the single most cost-effective improvements with 2-4 year paybacks in most climate zones.

Heat pumps reshape the math. Modern cold-climate heat pumps deliver COP 2.5-3.5 even at 5°F, meaning they produce 2.5-3.5 units of heat per unit of electricity consumed versus resistance heat's COP 1.0. DOE 2023 analysis shows switching from electric resistance to a heat pump cuts heating bills 50-60% in most climate zones, and from oil/propane to heat pump cuts costs 30-50% plus eliminates 4-8 tons of CO2 annually per household.

Sources: DOE RECS 2020, DOE Weatherization Assistance Program evaluation, DOE Heat Pump Study 2023